A recent Delaware Court of Chancery decision determined that the forum clause in the Tesla bylaws, after its redomestication in Texas, requiring derivative suits to be brought in Texas, would be upheld even though the lawsuits at issue were filed shortly before the Tesla shareholders approved the change and despite the suits being filed when
Francis G.X. Pileggi
Chancery Imposes Attorneys’ Fees for Breach of Confidentiality Order
By Francis Pileggi on
Posted in Court of Chancery Updates
The Delaware Court of Chancery recently imposed attorneys’ fees in connection with a request for sanctions for violation of a Confidentiality Order in the matter styled Accelerant Twister, LLC v. Marjo, LLC, C.A. No. 2023-0887-LWW (Del. Ch. April 10, 2026).
This short letter ruling followed a prior decision in this case to disqualify…
What is the Delaware Court of Chancery?
By Francis Pileggi on
Posted in Commentary
The Federalist Society prepared a video/podcast that explains what the Court of Chancery is, and what it does, and why it may have some outsized influence within the area of its jurisdiction. The link follows:
Chancery Declines to Nullify LLC Certificate of Cancellation
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery decision is notable for addressing the nuances of an analysis about whether a Certificate of Cancellation for an LLC should be nullified, in a post-trial opinion styled: In re Reinz Wisconsin Gasket, LLC, C.A. No. 2022-0859-MTZ (Del. Ch. April 2, 2026).
Background
The background of this case includes…
Chancery Imposes Penalties for Intentional Spoliation Coupled with Forgeries and Lies
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Chancery decision is blogworthy due to its analysis of an extreme case of spoliation coupled with other bad faith litigation conduct in NICbyte LLC v. Startop Investments, LLC, C.A. No. 2023-0637-NAC (Del. Ch. April 8, 2026).
Initially, I observe that egregious facts such as those offered in this case shed little light…
Annual National Firearms Law Seminar
By Francis Pileggi on
Posted in Commentary
I will be one of the speakers in Houston on April 17 at the Annual National Firearms Law Seminar, the largest gathering of Second Amendment attorneys in the country. The seminar provides a unique opportunity for attorneys, judges, FFLs, and others interested in firearms law to discuss recent developments in the law.
The 2026 seminar…
Section 225 Action Fails Based on Fraudulent Corporate Documents
By Francis Pileggi on
Posted in Court of Chancery Updates
A recent Delaware Court of Chancery decision is noteworthy for its analysis of a claim in a summary proceeding to determine the rightful directors of a company after learning that the claim was based on fraudulent corporate documents. The court rejected the requested relief in Berg v. Bar-Lavi, C.A. No. 2025-0959-LWW (Del. Ch. March…
Delaware justices divide over issue of post-demand news stories as “credible basis” for suit seeking corporate records
By Francis Pileggi on
Posted in Delaware Supreme Court Updates
Frank Reynolds, who has been covering Delaware corporate decisions for various national publications for over 40 years, prepared this article.
The majority of a divided Delaware Supreme Court recently affirmed a Chancery decision holding that reliance on post-demand, confidentially sourced news stories of alleged director wrongdoing could be a “credible basis” for an investor’s books-and-records…
Annual Tulane Corporate Law Institute
By Francis Pileggi on
Posted in Commentary
Over the last 21 years that I have been writing this blog I have often posted about an annual corporate law seminar in New Orleans called the Tulane Corporate Law Institute, that I am attending again this year. Started by the late great Delaware Supreme Court Justice Andrew G.T. Moore over 30 years ago…
Chancery Enforces Restrictive Covenant in the Business Sale Context and Addresses Fiduciary Duties of Former CEO Retained by Purchaser
By Francis Pileggi on
Posted in Court of Chancery Updates
Over the last few years, compared to the last few decades, the trend of courts in many states has been to be less willing to enforce restrictive covenants based on closer scrutiny of nuances such as the legitimate business interest in the scope of the restrictions. This development is consistent with the increasing number of…